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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: cell phone taxes Date: 7/9/2011 3:00 PM
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The company reimburses her $50 per month

That is a non-accountable reimbursement plan. She doesn't have to account for the actual usage, they just give her $50 per month with the assumption that she spends about that much. For tax purposes, a non-accountable reimbursement plan is just additional wages, subject to all of the usual taxes on wages.

Since she has to report the reimbursement as income, she can deduct her actual expense for business calls as an employee business expense.

--Peter
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